The hallmark of digital winners — satisfied, loyal employees
SAP, together with Oxford Economics, recently conducted a large-scale study of 4,100 executives and employees across 21 countries to identify the characteristics of the companies and individual winners of the digital economy.
Becoming a digital winner is not easy. A mere 16% of companies surveyed claimed digital winner status. But what is of particular interest in these survey findings is the strong, dominant-even, weighting of employees in assessing the business value of being a digital winner.
According to the study, digital winners are 38% more likely to report strong revenue and profit growth (76% vs. 55%), have much more satisfied employees (87% vs. 63%), and enjoy a much more loyal employee base (75% vs. 54%).
Also, digital winners reported more mature strategies and programs for hiring skilled talent, building diversity, and enabling succession planning, all of which add to their bottom-line results and overall employee satisfaction.
HR puts people first to find its digital groove
The dizzying advances in cloud, mobility, IoT and big-data analytics often result in technology dominating any discussion about digital transformation. While these technologies are essential for bringing digital transformation to fruition, improving the customer experience must always be the clear-cut objective of any meaningful digital strategy. At bottom, digital transformation is about people, not technology.
Understanding that an organization is only as innovative and successful as the talent it attracts, energizes, empowers and retains, HR executives must accelerate digitization. The goal is not only to cut costs and streamline service delivery but also to strengthen employee loyalty and help create a corporate culture that fosters talent development, team collaboration and continuous learning -- all of which are essential if an organization is to adapt to changing markets and shifting workforce dynamics.
Today’s mandate is clear: HR must embrace digital technologies to reinvent the workplace and create an employee experience that mirrors the best customer experience, an experience that is human centered, personalized, compelling, and memorable.
Out with the old (on-premises, disparate, legacy), in with the new (cloud HCM)
HR technology of past decades was comprised of numerous, disparate point solutions and basically functioned as a static, system-of-record platform. Despite today’s digital mandate, many HR departments are still saddled with these antiquated, ineffective, costly systems. According to Mercer's 2016 Global Human Resources Information Services study, the vast majority of HR departments' human resource information systems are antiquated, disparate and redundant.
Today, the shift is toward tightly integrated multi-faceted, cloud-based systems that incorporate recruitment, on-boarding, learning and continuous performance management.
Change is the order of the day for HR organizations worldwide. Rigid back-office functionality is giving way to dynamic employee engagement. The tortuous annual review is being swapped out for continuous performance management. Among millennials and generation Zers, corporate culture often trumps take-home pay in deciding where to work. Volatility, uncertainty, complexity and ambiguity characterize today’s global business climate, along with increasing competition, ever-changing work dynamics, growing skills gaps, and pressing gender equality and diversity issues.
As reported in AssociationsNow, according to the annual CEO Challenge 2016 survey conducted by the Conference Board, the failure to attract and retain top talent is the leading concern among corporate CEOs, presidents and chairs.
Amidst all this challenge, change and quest for top talent, CEOs are green-lighting digital Human Capital Management (HCM) initiatives in order to cut costs, improve performance and keep their companies competitive.
(As a refresher, HCM is an umbrella term encompassing everything from core HR functions (personnel administration, benefits, compensation management, payroll), to recruiting, on-boarding, performance management, workforce management and learning.)
As reported in a recent Forbes Insight study, a survey of 798 HR executives from across the globe conducted by KPMG finds 40% intend to replace their existing, on-premises HR system with a SaaS solution in the near future. Specific HR functional areas ripe for cloud adoption include benefits administration (40%), HR analytics (32%), talent review services (32%), time reporting services (32%) and core HR functions (30%).
According to AppsRunTheWorld, the HCM applications market is expected to reach $17.8 billion by 2020, compared with $15 billion in 2015, at a compound annual growth rate of 5%. MarketsandMarkets pegs the HCM market notching $19.8 billion by 2021.
SuccessFactors — the people’s choice for digital HCM
SAP SuccessFactors is a leading global provider of cloud-based human capital management (HCM) software. SAP SuccessFactors’ application suite spans and integrates the entire HCM landscape, including on-boarding, social business and collaboration tools, a learning management system (LMS), performance management, recruiting software, applicant tracking software, succession planning, talent management, and HR analytics.
More than 6,200 customers (managing 46 million employees) worldwide have selected SAP SuccessFactors HCM solutions to help their HR teams step up their digital game.
Across the board, leading analyst firms (Forrester, Gartner, IDC) recognize SAP SuccessFactors for its excellence and continuous innovation across the entire suite of cloud-based HCM solutions.
NTT DATA knows SuccessFactors
NTT DATA is a leading provider of SAP SuccessFactors implementation services. In addition to this, we also are an SAP SuccessFactors customer — adding to the growing wave of global organizations that have selected SAP SuccessFactors HCM solutions.
With several major acquisitions pushing NTT DATA’s global workforce to more than 75,000 employees worldwide, the company needed to unify operations across multiple locations with disparate systems. The goal was to create a unified workforce that was integrated operationally and culturally.
As a professional services company, NTT DATA is focused on its employees and their continued growth. Accordingly, NTT DATA wanted a solution that would serve as a core system of record to manage all employee data, as well as bring together goals, objectives, and performance management.
NTT DATA selected SuccessFactors and choreographed the rollout of the SuccessFactors Performance & Goals, SuccessFactors Compensation, including variable pay, and SuccessFactors Employee Central solutions.
The average deployment time for each module was 3 – 5 months and, today, the system, re-labeled “Navigator” by NTT DATA, reaches 20,000+ users worldwide and continues to see growth in self-assessment participation by employees.
Read more about NTT DATA’s SuccessFactors success story here.
As a leading SAP SuccessFactors implementation partner, NTT DATA invests heavily in pre-configured templates with built-in best practices, project accelerators, data migration tools, bundled offerings and HCM specialists that allow our clients to significantly decrease HCM implementation timelines and costs.
As a SuccessFactors customer, we look forward to test-driving the extended continuous performance management capabilities of SAP SuccessFactors Performance & Goals, and to putting SAP SuccessFactors workforce analytics to the test.
For more NTT DATA perspective on HR challenges and HCM opportunities, check out the following SAP Advisor articles: Want to Win at Business? Win the Talent War, Achieving Success with Digital HR, Growth Need Not Be an HCM Nightmare, Hybrid HCM: The SAP Way, Top Ten Reasons to Implement SuccessFactors Now.
Contact NTT DATA today to learn more about our expertise and hands-on experience with SAP SuccessFactors or to schedule a meeting with our HCM specialists at SuccessConnect in Las Vegas, August 29 – 31.
Post Date: 4/28/2017